Board Minutes

IOWA LAKES ELECTRIC COOPERATIVE
Board of Directors Meeting
March 26, 2026

ONLINE MINUTES

The meeting of the Iowa Lakes Electric Cooperative Board of Directors was called to order at 10 a.m. by Board Chair Dan Winterhof on March 26, 2026, at the Cooperative’s headquarters in Estherville, Iowa. Executive Assistant Amy Howard assisted in the taking of minutes thereof.

The following directors were present either in person or by video conference: Bruce Amundson, Ben Ashland, Jerry Beck, Chad Boysen, Jason Glienke, Nick Kerns, Alan Madden, Crystal Pluth, Gary Rouse, Mark Tuttle, Trent Will, Roger Williamson and Dan Winterhof. Absent: Craig Deim

Also present for the meeting were President and CEO Ryan Craig, Vice President of Operations and Engineering Aaron Ruschy, Vice President of Finance/CFO Shelly Tredway, Vice President of Customer and Corporate Relations Jen Sievert, Executive Assistant Amy Howard and Cooperative Attorney Scot Bauermeister.

Participating in a portion of the meeting were Principal Luke Greden with CliftonLarsonAllen, Manager of IT & Technology Support Tim Mielke, Energy Advisor Jeremy Madden and Marketing Assistant Bobbi Jo Ruschy.

AGENDA

Board Chair Winterhof asked if there were any additions to the Board Agenda. Being none, it was moved and seconded to approve the agenda. Motion carried.

MINUTES

Board Chair Winterhof asked if there were any changes or corrections to the February 26, 2026, board meeting minutes as provided. Being none, it was moved and seconded to approve the minutes. Motion carried.

UNFINISHED BUSINESS

Attorney Bauermeister reported there was no pending litigation.

NEW BUSINESS

2025 Patronage Allocation (Action)

Vice President Tredway reviewed the Cooperative’s calendar year 2025 margins and the proposed allocation in accordance with the Cooperative’s Restated Articles of Incorporation and Iowa Code Section 449.30. Discussion followed regarding current and prior years’ margin allocation history, consistent with Cooperative Policy 203. Tredway presented available options, including her recommendation. Discussion followed.

Following discussion, it was moved and seconded to allocate the 2025 margins as follows:

$3,560,000 patronage assignable to the Class A members of which $1,860,000 (CBPC LIFO Roll) will be retired and returned to the membership in 2026, $950,000 will be retired and returned to the membership in 2026 and $750,000 to be eligible for retirement at a future date subject to Board discretion.
$750,000 to the Plant Replacement Reserve-electric
$0 to the Plant Replacement Reserve-wind
$481,035 to the Reserve for Contingent Losses
$630,738 to the Reserve for Statutory Surplus
$1,000 patronage assigned to Class B Members

Quarterly Estate Patronage Retirements (Action)

Vice President Tredway presented the following proposed estate retirements:

TOTAL PREVIOUSLY DISCOUNTED CHECK

PATRONAGE UNCLAIMED AMOUNT AMOUNT

AMOUNT

8 applicants $6,040.09 $553.60 $1,987.86 $4,605.83

It was moved and seconded to approve the discounted estate retirements for the first quarter of 2026. Motion carried.

2026 Budget Presentation (Action)

Vice President Tredway reviewed the proposed 2026 annual budget that has been prepared and distributed to the directors. Tredway stated information for consideration at year end includes:

Increase in revenues of 7% due to the rate increase
10.7% increase in purchased power
Projected $250,000 year-end load management rebate
Projected year end 2026 operating margin of $945,000
Revenue deferral recognition may be necessary

After a thorough discussion and review, it was moved and seconded to approve the proposed budget for the year 2026. Motion carried.

2025 Audit Report

Vice President Tredway introduced Principal Luke Greden with CliftonLarsonAllen. Greden presented the firm’s annual audit report of the examination of the financial records of the Cooperative for the calendar year ending December 31, 2025. Greden reviewed the auditor’s duties and responsibilities along with management’s representations of the financial statements.

Greden stated the Cooperative’s audit for 2025 was presented as a “clean” audit opinion and there were no audit adjustments and no internal control issues identified during the audit. Greden also stated the Cooperative’s management team used solid judgement in their use of various accounting estimates.

Greden reviewed various items of interest related to the Cooperative’s financial statements and operating results. Discussion followed.

Executive Session with Auditor & Approval of Audit Report – Closed Session (Action)

At this time, Board Chair Winterhof requested the Board of Directors go into closed session. It was moved and seconded to go into closed session. Motion carried.

The staff were excused and left the meeting to allow the Board of Directors, as an “audit committee of the whole,” to consult further with Greden.

It was moved and seconded to come out of closed session. Motion carried.

It was moved and seconded to accept the 2025 audit report as presented. Motion carried.

Greden left the board meeting.

Memberships for Approval (Action)

It was moved and seconded to approve the memberships as presented. Motion carried.

Revolving Loan Fund (RLF) – Graettinger Economic Development Council (Action)

Vice President Sievert presented the revolving loan fund request from the Graettinger Economic Development Council (GEDC).

The application request is for $75,000 from the Iowa Lakes Electric Cooperative’s Revolving Loan Fund to construct a 1,200 square foot Homes for Iowa Spec home. This will be the 5th Homes for Iowa house that GEDC has purchased.

Following discussion, it was moved and seconded to approve the request as presented. Motion carried.

Iowa Lakes Electric Cooperative Incentives Review

Vice President Sievert introduced Marketing Assistant Bobbi Jo Ruschy and Energy Advisor Jeremy Madden. The three staff members provided an overview of the Cooperative’s energy efficiency incentives available to member-owners. Discussion followed.

Ruschy and Madden left the board meeting.

External Penetration Test Executive Report

Manager of IT and Technical Support Tim Mielke presented the External Penetration Test Executive Report. Mielke explained the primary objective of this assessment was to evaluate the Cooperative’s external network infrastructure. The external penetration test was performed in February 2026. Mielke noted the previous external penetration test was conducted in April 2024. Mielke explained the external summary found one medium risk item and one information risk item. The Cooperative’s IT Department will accept the risk due to network hardware configuration limitations. Discussion followed.

Mielke left the board meeting.

NRECA Governance Talk Video

There was no NRECA Governance Talk Video this month.

Vice President Reports

Vice President Ruschy reviewed his monthly report.

Vice President Sievert reviewed her monthly report.

President and CEO Report

President and CEO Craig reviewed his monthly report, which included an overview of meetings he attended during the past month and an update on the Cooperative’s strategic priorities. Craig provided an update on the potential sale of the Cooperative’s two wind farms. Discussion followed.

G&T Reports

Basin – Director Beck provided a Basin report.

Corn Belt Power Cooperative – President & CEO Craig provided a Corn Belt report.

NIPCO – President & CEO Craig provided a NIPCO report.

IAEC – Director Amundson provided a Statewide report.

DIRECTOR’S MEETING AND TRAINING REPORTS

Vice Chair Boysen reported on the CoBank Midwest Customer Meeting he attended in Omaha, on March 2-3.

Directors Beck, Pluth and Winterhof provided a report on NRECA PowerXchange they attended in Nashville, Tenn., on March 8-11.

Director Amundson and Executive Assistant Howard provided a report on REC Day on the Hill held on March 17.

MISCELLANEOUS

Board Chair Winterhof reminded everyone in attendance the next regularly scheduled Board of Directors meeting will be held at 7 p.m. on Thursday, April 23, 2026, at the Spencer Service Center.

Board Chair Winterhof requested miscellaneous items be brought before the Board of Directors for discussion and attention at this time.

Board Treasurer Pluth reviewed the journal of checks and master credit card statements issued for the month of February 2026 prior to the meeting.

Board Treasurer Pluth and Board Secretary Will reviewed and approved the director per diem forms for the month of March 2026.

ADJOURNMENT

There being no further business to be brought before the Board of Directors, it was moved and seconded to adjourn. Motion carried.

Approved April 23, 2026

Trent A. Will, Secretary